Income Tax Returns (E-Filing)
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What is Income Tax Returns - E Filing?
E-filing or electronic filing is submitting your income tax returns online. There are two ways to file your income tax returns. The traditional way is the offline way, where you go the Income Tax Department’s office to physically file your returns. The other way is when you e-file through the internet. Over the past few years, e-filing has become popular because it is easier, doesn’t require prints of documents, and can be done easily. SAI ENTERPRISES provide all the set of services and modes through which we can e-file your ITR Return without any problem and delay; through our expert team, we manage your ITR return professionally and with great deal of accuracy and future guiding support, in terms of your investments, deductions and all the rest inflow and outflow of your incomes and expenditures easily. - Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable to FY 2020-21 (AY 2021-22)
| Income Tax Slab | Tax Rate |
|---|---|
| Up to Rs 2.5 lakh | NIL |
| Rs 2.5 lakh to Rs 5 lakh | 5% (Tax rebate of Rs 12,500 available under section 87A) |
| Rs 5 lakh to Rs 7.5 lakh | 10% |
| Rs 7.5 lakh to Rs 10 lakh | 15% |
| Rs 10 lakh to Rs 12.5 lakh | 20% |
| Rs 12.5 lakh to Rs 15 lakh | 25% |
| Rs 15 lakh and above | 30% |
- The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
- Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
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Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.
Leave Travel Allowance (LTA)
House Rent Allowance (HRA)
Conveyance
Daily expenses in the course of employment
Relocation allowance
Helper allowance
Children education allowance
Other special allowances [Section 10(14)]
Standard deduction
Professional tax
Interest on housing loan (Section 24)
Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA) -
Points to remember while opting for the new tax regime:
Option to be exercised on or before the due date of filing return of income for AY 2021-22
In case of a taxpayer having business income, the option once exercised can be withdrawn only once. Further, if the taxpayer withdraws the option, he will never be able to opt-in the option again.
According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax. - Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I
| Income Tax Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000* | NIL |
| ₹2,50,001 to ₹5,00,000 | 5% of total income exceeding ₹2,50,000 |
| ₹5,00,001 to ₹10,00,000 | ₹12,500 + 20% of total income exceeding ₹5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% of total income exceeding ₹10,00,000 |
- No tax for individuals with income less than ₹ 2,50,000
- 0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups
- 20% tax with income ₹ 5 lacs to 10 lacs
- 30% tax with income above ₹ 10 lacs
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A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:
Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19
Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20 - Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Income Tax Slabs for Senior Citizens (60 Years Old or More but Less than 80 Years Old) for FY 2019-20 – Part II
| Income Tax Slab | Tax Rate |
|---|---|
| Income up to Rs 3,00,000* | NIL |
| Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Income Tax Slabs for Super Senior Citizens (80 Years Old or More) for FY 2018-19 – Part III
| Income Tax Slab | Tax Rate |
|---|---|
| Income up to Rs 5,00,000* | NIL |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Six steps to E-Filing your Income Tax Return
- Step 1. Register yourself: To e-file your income tax return, you will have you register on the Income Tax Department's online tax filing site (incometaxindiaefiling.gov.in). You have to provide your permanent account number (PAN), name and date of birth and choose a password. Your PAN will be your user ID.
- Step 2. Choose how you want to e-file: There are two ways of e-filing your income tax return. One is to go to the download section and select the requisite form, save it on your desktop and fill all the details offline and then upload it back on the site. Or you can choose to fill the form online by selecting the quick e-file option.
- Step 3. Select the requisite form: ITR-1: For individuals earning a salary, pension, or income from property or sources other than lottery. ITR-2: For those earning capital gains. ITR 2A for those owning more than one house but no capital gains. ITR 3, 4 and 4S: Professionals and business owners.
- Step 4. Keep the documents ready: Keep your PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans handy. Download Form 26AS, which summarizes tax paid against your PAN. You can then validate your tax return with Form 26AS to check your tax liability. If you earn more than Rs 50 lakh, from this year you will have to fill an additional column —"AL" or assets and liabilities. You will have to disclose the value of your assets and liabilities. Assets have to be declared at cost.
- Step 5. Fill form and upload: If you choose to fill the form offline, after you have downloaded the form and filled all the details, click on 'generate XML'. Then go to the website again and click on the 'upload XML' button. You will have to first log in to upload the XML file saved on desktop and click on submit.
- Step 6. Verify ITR V: On submitting your ITR form, an acknowledgement number is generated. In case the return is submitted using digital signature, you just have to preserve this number. If the return is submitted without a digital signature, an ITR-V is generated and is sent to your registered email ID. The tax filing process is incomplete and ITR is invalid unless your ITR V is verified. You can electronically verify or mail the signed ITR V to the processing centre in Bengaluru within 120 days of filing the return.
Difference between Assessment Year and Financial Year?
Financial Year is the period between 1st April to 31st March. Assessment Year is the next year in which the income is liable to tax.
For example, if your financial year is from 1 April, 2019 to 31 March 2020, then it is known as FY 2019-20. The assessment year for income earned during this period would begin after the financial year ends–that is on 1 April 2020 until 31 March 2021 (AY 2020-21)
What is the Deadline for E-Filing Tax Returns?
The last date for e-filing income tax returns for FY 2019-20 is 31st July 2020. You can e-file your tax returns any time before then, but it is always better to e-file early to avoid the rush and heavy website traffic in the last month.
